With the boom in lending, domestic financial institutions are taking action and trying to dispense credit cards at the lowest possible criteria, and now that one of the largest international issuers, American Express, is leaving Hungary, several OTP customers may want to look around credit card market, which financial institution offers what.
We’ve collected what you need to know about using plastics, but let’s face it: a credit card is the worst choice when you run out of money, but you have to buy something because it’s one of the most expensive loans. The scheme is actually designed for people who can pull out two or three times the amount of their credit line out of their pockets at any time, so they don’t even get into debt. If you need money and are looking for a solution, use the Tituba personal loan calculator for the cheapest and most suitable offer for you.
The horse ran with you? Is your credit card debt repayment too high? Use our calculator to find the cheapest debt settlement loan!
Why credit card at all?
The advantage of a credit card is that it is convenient to use. In most cases, this is an embossed card that is accepted at most places abroad, and you can get advanced services. The biggest advantage, however, is that credit cards also give you money back on our various purchases.
This is usually around 1-4 percent per product category and financial institution, but a credit card can typically be a good solution, for example, to clear your bank charges with your purchases or to collect a few tens of thousands of dollars in credits each year. Another useful feature is, for example, prestige cards that can be used for higher spending – if you travel abroad frequently – free travel insurance.
One of the benefits of a credit card, like bank cards, is that you can use it for free at home and abroad, and it can do a good job of shopping online, because if you steal your card information and steal your bank money, we just need to verify.
But just be careful
You can use your credit card for up to 45 days free of charge with your credit card.
If during the interest-free period you are unable to repay all or part of your debt, you will have to pay interest on your interest. If we repay less than our total debt but repay more than the minimum amount, we shall pay the interest specified in the list of conditions.
In Hungary, on average, we can pay an annual 38% interest rate once we slip away, and other administrative costs realize this. As this is a significant expense, with a loan fee of HUF 380,000 per one million forints debt, it is worth replacing it with a more favorable low-interest loan, which can save up to 100 thousand a year.
It costs you to use the bank money
It is worth studying the list of conditions before applying for a credit card in order to weigh the pros and cons of this credit facility. It is useful to require up to the same credit line as your payment, as if you reach multiple times your credit line and use it to the full, you can expect a significant amount of your payment to go toward interest repayment.
Be sure to avoid cash withdrawal using a credit card as this typically has very high costs.
The annual card fee is between $ 2,000 and $ 5,000, depending on whether your card is in the premium category. However, you can save several times that amount with a credit card if you pay for a family’s shopping and utility bills with a credit card. If you spend an average of two million forints per year on average and get a $ 2 rebate on every 100 forints in the program, you can save up to $ 10 on a $ 2 million credit card purchase. If we deduct the $ 5,000 annual card fee, we still win $ 10,000 with the credit card. Of course, additional prizes can slim down this amount: